Fraud Detection and Prevention Market To Generate Revenue Worth USD 94.2 Billion by 2030
- Published: December 2023
The fraud detection and prevention market is expected to generate revenue of USD 94.2 billion by 2030, advancing at a compound annual growth rate (CAGR) of 19.0% during 2024–2030. This can be ascribed to the increasing usage and development of machine learning (ML) and artificial intelligence (AI) for reducing fraudulent activities, the surging number of phone scams targeting the elderly population, and the growing imperative to safeguard online banking and insurance sectors.
Moreover, high-profile data breaches have become common concerns, exposing extremely sensitive information. In order to provide seamless and frictionless data safety to customers, there has been an increase in the need for fraud prevention solutions that can detect fraudulent activities. Additionally, an increase in cases of cybercrime, remittance fraud, insurance, fraud, etc. drives the adoption of fraud detection and prevention solutions. Also, due to the emergence of online claims, there has been an increasing opportunity for fraudsters to offer false insurance billings for services provided by hospitals and governments.
Implementing Blockchains in Supply Chain Management To Safeguard Data
Blockchain technology offers greater precision and technology in both fraud detection and prevention. This technology is equipped with security and automation capabilities that can significantly help in maintaining the efficiency and effectiveness of operations while reducing the risk of fraud.
Moreover, blockchain is difficult to decipher or manipulate and it can only be updated through agreement between network participants. Also, blockchain can help develop more strong identity verification processes. By storing verified identities, it becomes much easier to reduce the risk of identity theft and fraud claims in various industries. Additionally, if a product is digitized on blockchain, it becomes easier to trace back to the origin, since it is distributed and recorded on a shared ledger; hence, reducing counterfeiting.
Payment Fraud Holds the Largest Market Share
Based on application, the payment fraud category relies on a diverse range of tactics aimed at illicitly obtaining payment information. This includes credit card fraud, debit card fraud, phishing, identity theft, and others. Moreover, the rise in the number of online applications and mobile banking services has further increased fraudulent activities by closely resembling real retail scores and home-delivery services.
In addition to countering such threats, fraud detection and prevention solutions incorporate the employment of real-time analysis of transactional data, safeguarding consumers by enabling the identification of unusual spending patterns and typical transaction locations. This proactive approach serves to safeguard both consumers and businesses, shielding them against financial losses resulting from scams or frauds.
Geographically, the Asia-Pacific (APAC) market is expected to register the fastest growth in the forecast period. This can be due to factors like the increasing number of establishments of large enterprises, improving IT development, and expanding batch streaming and real-time fraud detection to protect SMEs in the region. Additionally, in India, spurring digitization has evolved development in disciplines such as robotics, artificial intelligence, machine learning, and biometrics; thus, increasing the investment sources both from government and private enterprises in the fraud prevention sector.
Most prominent players operating in the fraud detection and prevention market have a fragmented structure, listing down the interests of multinational and regional industry players. The top players include IBM Corporation, RELx, Experian PLC, Fiserv Inc., Sas Institute Inc., and ACI Worldwide Inc.